Things are looking up on higher timeframes for Bitcoin price action
Bitcoin price remained near the top of its recent trading range on March 20 as the weekly close looked set to break multi-week highs. At the time of writing, BTC is changing hands at $41,201.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price declines after a positive week
BTC is moving around the $41,000 region. Friday’s late rally was widely celebrated, and Saturday saw a $42,400 bounce on Bitstamp, matching the highs from early March. Since early February, the weekly chart looks set to provide Bitcoin’s best weekly close.
Previous times have warned of a real shift happening in BTC price action. A potential rally may not last and eventually become a precursor to new lows.
There are two likely trajectories for BTC/USD based on the daily need to hold the market at a particular price. One option involves a break of $42,500, followed by $45,000, while its bearish counterpart offers a bottom target of $29,000 – $32,000. However, on longer timeframes, one can sense confidence.
Gearing up for another macro week, markets look stronger despite the difficulties facing Europe and the US. If optimism is unlikely, Bitcoin could be profitable as its correlation with stock performance persists.
“Bitcoin addresses that hold 10 $BTC or lower have been accumulating more and more of the network’s supply since May 2021. They’re very close to breaking the all-time high of 14.56% held in November 2020. Meanwhile, 10+ BTC addresses continue sliding”, Santiment reported.
Bitcoin buyers remain active after maintaining support at $37,000 over the past two weeks. Over the past week, the cryptocurrency has been up 7% and could see further upside toward the $43,000-$46,000 resistance zone. Short-term momentum signals have turned upward, especially after a downside exhaustion signal appeared on March 7. Further, the relative strength index (RSI) on the daily chart is rising above oversold levels (above 50), suggesting the four-month-long downtrend in price is nearing an end. Still, there is significant overhead resistance on the charts, which could stall the current price bounce.
The overall cryptocurrency market cap now stands at $1.852 trillion, and Bitcoin’s dominance rate is 42.1%.
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